MARKET RESEARCH

Mar 3rd Mar 7th

SPOTLIGHT
Australia GDP Growth Rate (YoY)

Positive data sustains PSI20 trend

Last week, PSI20 rose 1.29% to 7475.07 points. Data released by INE showed industrial production in Portugal slowed down in January, +3.9% (YoY), after a 5.7% growth (YoY) last December. INE also said retail sales increased by 2.4% (YoY) in January (Dec: -0.4% YoY) as the employment in the retail sector continued to tumble (-2.4% YoY) in January. The president of IGCP announced the agency for public credit sold 1267 million of Government Bonds through a private placement, on January, as the Portuguese Treasury aimed at diversifying funding sources and rolling over debt. Finally, data from INE revealed a fall of 2.3% (YoY), in January, of the index for the turnover in the Portuguese manufacturing sector, after an increase of 2.7% in the previous month.

FEP Finance Club; INE; tradingeconomics.com

INDEXES PERFORMANCE
Mar 03
PSI 20 STOXX 50 FTSE 100 DAX CAC 40 NIKKEI 225 HANG SENG
7,190.05 3,053.99 6,708.35 9,358.89 4,290.87 14,652.23 22,500.67

Mar 04
7,369.86 3,136.33 6,823.77 9,589.15 4,395.90 14,721.48 22,657.63

Mar 05
7,417.50 3,135.97 6,775.42 9,542.02 4,391.25 14,897.63 22,579.78

Mar 06
7,515.12 3,144.53 6,788.49 9,542.87 4,417.04 15,134.75 22,702.97

Mar 07
7,475.07 3,095.31 6,712.67 9,350.75 4,366.42 15,274.07 22,660.49

Wkly Chg
1.29% -1.71% -1.42% -3.52% -0.95% 2.92% -0.77%

European shares fall on Ukraine war threat

European stock markets tumbled last week, with STOXX50 slipping 1.71%, as investor concern increased that the escalating tension in Ukraine will hurt corporate earnings. According to Research Group Markit, Euro Zones manufacturing PMI rose last month to 53.2, from 53.0 in the preceding month. Moreover, Euro Zones Services PMI climbed to 52.6 last quarter, from 51.7 in the previous one. According to Eurostat, Producer price inflation in the euro zone fell more than expected in January (-1.4% YoY), fueling concerns over deflation. On Thursday, ECB decided to leave the Refinancing Rate unchanged at 0.25%.

FEP Finance Club; Google Finance

CURRENCIES
Mar 03
EUR/USD EUR/CHF EUR/GBP EUR/JPY EUR/YUAN AUD/JPY
1.374 1.213 0.824 139.310 8.443 90.510

Mar 04
1.374 1.219 0.825 140.470 8.440 91.560

Mar 05
1.373 1.219 0.822 140.560 8.416 91.890

Mar 06
1.386 1.220 0.828 142.880 8.483 93.820

Mar 07
1.388 1.218 0.830 143.290 8.499 93.660

Wkly Chg
0.55% 0.24% 0.70% 2.00% 0.17% 3.06%

FEP Finance Club; Investing.com

REFERENCE RATES
Mar 03 Euribor 1M Euribor 3M Euribor 6M Euribor 12M Eonia 0,220% 0,288% 0,387% 0,554% 0,156% Mar 04 0,218% 0,287% 0,386% 0,552% 0,157% Mar 05 0,216% 0,286% 0,384% 0,551% 0,164% Mar 06 0,216% 0,287% 0,384% 0,551% 0,163% Mar 07 0,229% 0,299% 0,398% 0,567% 0,159%

Asian stocks extend gains

Asian stocks rose, with the regional gauge capping its longest streak of weekly gains since September. Also, Asian currencies had the best week since September 2012, led by Indonesias rupiah and Indias rupee. Last Friday, Chinese authorities have allowed the countrys first corporate bond default in order to make its financial system more market-oriented. Chinese trade balance turned into a USD 22.9 billion deficit in February of 2014, as exports tumbled 18% (YoY) and imports rose 10.1% (YoY). In February, South Korean trade surplus decreased to USD 926 million, while annual inflation rate eased to a four-month low 1%. Australias trade surplus surged to $1,4333m in January, the highest value since August of 2011. Australian GDP grew faster than expected in the last quarter of 2013, due to the exports and consumption. Moreover, RBA decided to leave cash rate unchanged at 2.5% for the sixth straight meeting.

FEP Finance Club; Banco de Portugal; BPI

BOND YIELDS
Mar 03 Portugal 6M Portugal 5Y Portugal 10Y Spain 10Y France 10Y Italy 10Y Germany 10Y UK 10Y 0.750% 3.766% 4.884% 3.501% 2.151% 3.457% 1.561% 2.655% Mar 04 0.456% 3.718% 4.842% 3.443% 2.168% 3.415% 1.600% 2.703% Mar 05 0.632% 3.602% 4.721% 3.364% 2.171% 3.373% 1.602% 2.720% Mar 06 0.626% 3.591% 4.696% 3.414% 2.223% 3.449% 1.651% 2.773% Mar 07 0.636% 3.492% 4.574% 3.362% 2.212% 3.417% 1.653% 2.793%

FEP Finance Club; Investing.com

Financial Markets | fepfinanceclub@gmail.com|www.facebook.com/FEPFinanceClub

Page 1/2

SPOTLIGHT
U.S. Unemployment Rate

Hiring and factory data edge out Ukraine

S&P 500 rose 1% last week, as better-than-forecasted data on hiring and manufacturing fueled optimism in the economy and overshadowed concern on Ukraine. On the economic front, data showed nonfarm payrolls increased by 175,000 in February, exceeding expectations of a 152,000 increase. On the other hand, the unemployment rate ticked up to 6.7%, from Januarys 6.6%. The ISM's manufacturing purchasing managers' index increased to 53.2 in February, after falling to an unexpectedly low 51.3 in January. On the other hand, non-manufacturing purchasing managers' index tumbled to 51.6 last month, from 54.0 in January. Moreover, ADP's proprietary private payrolls jobs report shows a monthly gain of just 139,000 private sector jobs for February 2014. January was revised downward, from solid 175,000 jobs initially reported, to just 127,000 for the month.

FEP Finance Club; investing.com

INDEXES PERFORMANCE
Mar 03
S&P 500 DJIA NQ 100 S&P Lac 40
1,845.73 16,168.03 3,668.37 3,303.30

Mar 04
1,873.91 16,395.88 3,719.93 3,345.51

Mar 05
1,873.81 16,360.18 3,727.19 3,355.70

Mar 06
1,877.03 16,421.89 3,720.93 3,393.96

Mar 07
1,878.04 16,452.72 3,703.40 3,330.35

Wkly Chg
1.00% 0.80% 0.20% -0.70%

FEP Finance Club; Google Finance

Mexico release important data

Mexican consumer price inflation slowed in February, with lower fresh produce prices partially offsetting increases in energy and other costs. The consumer price index rose 0.25% last month, pushing the annual inflation rate down to 4.23%, from 4.48% at the end of January. Mexican Consumer Confidence numbers for February remained unchanged from January's 84.5 result, despite expectations of a higher reading. Seasonally adjusted data was up at 86 from the previous reading of 83.4. Without a marked improvement and as recent data was rather unfavorable, this could influence the country's central bank Banxico's monetary policy decision due on March 21.

CURRENCIES
Mar 03
USD/JPY USD/YUAN AUD/USD GBP/USD USD/CHF USD/CAD
101.420 6.146 0.892 1.667 0.883 1.108

Mar 04
102.220 6.143 0.896 1.667 0.887 1.109

Mar 05
102.360 6.129 0.898 1.671 0.887 1.103

Mar 06
103.060 6.119 0.910 1.674 0.880 1.099

Mar 07
103.260 6.128 0.907 1.671 0.878 1.109

Wkly Chg
1.44% -0.31% 1.59% -0.19% -0.30% 0.21%

FEP Finance Club; Investing.com

COMMODITIES
-0.03% 0.17% -0.33% 5.30%
Crude Oil WTI Natural Gas Crude Oil Brent Corn

1.04% -1.52% -3.26% 1.99%

Gold Silver Copper Sugar

Gold rose on tensions over Ukraine

Gold ended higher due to fears on the Ukraine crises and to forecasts that U.S. borrowing costs will continue low, while European inflation will pick up gradually. Besides, Copper dropped on concerns over Chinese bond defaults underlined worries over the health of the nations economy. On the energy front, oil tumbled on speculation that tension between Ukraine and Russia wont disrupt oil supplies. Also, a report showed that U.S. inventories increased. Finally, Corn jumped as demand rose for exports from the U.S., amid tensions between Russia and Ukraine.

FEP Finance Club; Investing.com

US TREASUR Y YIELDS
Mar 03 US 3M US 1Y US 10 Y US 30 Y 0.05% 0.10% 2.60% 3.56% Mar 04 0.06% 0.11% 2.70% 3.65% Mar 05 0.06% 0.12% 2.71% 3.65% Mar 06 0.05% 0.12% 2.74% 3.69% Mar 07 0.05% 0.13% 2.79% 3.72%

FEP Finance Club; Investing.com

Ana Reis

Beatriz Fougo

David Novo

Jos Silva

Pratik Ashok

Pedro Santos

Financial Markets | fepfinanceclub@gmail.com|www.facebook.com/FEPFinanceClub

Page 2/2